Vopak, Enagas Buy 100 Percent Stake in Altamira LNG (Mexico)

Vopak and Enagas from Spain have reached agreement with current owners Shell (50%), Total (25%) and Mitsui & Co., LTD. (25%) to acquire 100% of the shares in the LNG import and re-gasification terminal in Altamira, Mexico.

For this purpose, a joint venture has been established in which Vopak owns 60% of the shares and Enagas 40% (with joint management control). The closing of the transaction is subject to the conclusion of project financing and government approvals.

The LNG terminal facilitates overseas LNG imports and supply of gas into Mexico by a joint venture of Shell and Total, and has been operational since 2006 under the highest safety and technical standards. The facility consists of 2 fully operational tanks of 150,000 cubic meters (cbm) each and a jetty capable of receiving LNG vessels with a capacity of up to 216,000 cbm. The terminal has a throughput capacity of 7.4 billion cubic meters per annum (bcma), which is fully contracted for a long-term period. The capacity can be expanded up to 10 bcma by building and operating a third tank. The Vopak/Enagas joint venture is expected to take over operational control in Q3 2011.

Located on the east coast of Mexico adjacent to the Vopak Chemicals Terminal in Altamira, the terminal has excellent connections to the existing Mexican gas infrastructure securing the supply of gas to power plants in the vicinity as well as to Mexico City. The Mexican gas usage is expected to grow in the coming decades mainly due to new gas fired power plants coming on stream which will lead to increasing imbalances between local demand and supply. The terminal will be able to facilitate the expected additional LNG imports resulting from this imbalance by expanding its capacity.

Vopak actively pursues a global growth strategy for LNG. The aim of this strategy is to facilitate key customers in markets that show an (increasing) imbalance between the demand and supply of natural gas by operating independent third party LNG import and re-gasification terminals. Currently, Vopak and its partner Gasunie are constructing the first Dutch LNG import terminal in Rotterdam with a throughput capacity of 12 bcma. This terminal will become operational in September 2011.

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Source: Vopak, June 2, 2011;